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tv   [untitled]    December 8, 2011 8:30pm-9:00pm EST

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you know how sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else and you hear or see some other part of it and realize everything you thought you knew you don't know i'm charming welcome to the big picture. the for.
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i'm max kaiser this is the kaiser report some are saying that economics is the new rock n roll i tell you what somebody should bring over to metallica because they are fearful of going on tour in europe due to the instability in the currency
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markets in the euro zone and around the world here's a group called metallica and yet they are completely on the head in that they own absolutely no metal they own no gold they own no so or their manager is winning on about all the currency risk the kurds are risk gets a medal here for it to morrow oh that's right economics is the new rock n roll get off stage. stay here max i'll tell you who was heads with a special purpose entities vehicle and that was hank paulson you know in episode two eighteen you said seven circles of hell from dantes inferno there actually nine we receive so many comments saying that macs are nine and the two you missed of course max were number eight which is fraud and number nine treachery the two things that define hank paulson and i thought perhaps he wrapped it up in a special purpose entities vehicle and put it off balance sheet and that's why you
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were confused well no that's right hank paulson took the two lowest circles and he wrapped him up rich to characterize them and now they're trading off balance sheet dantes inferno in the post and for now somewhere in the inferno afterlife that's why i call paulson satan time satan he actually took two circles of hell and distributed as an off balance sheet special person end of the account and it's collateral for goldman sachs super hell collateralized mortgage obligation but it's a trillion dollar business you see bees above me speak in tongues don't need no money they're just made a billion dollars on hank paulson well there's a continuation to this story we're talking of course about the fact that he gave inside information to a dozen hedge funds half of whom were former goldman sachs employees of his about that upcoming nationalization of fannie mae and freddie mac. well rolling stones tim dickinson asks hank paulson's crony capitalism and the first paragraph he says max crony capitalism isn't usually this bald but then again
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this is hank paulson we're talking about that kind of capitalism that the term doesn't go far enough to to describe paulson in this case i'm going to talk about trillions of dollars here that and billions that he gifted to his buddies well i thought it was a perfect mafia name for him hank baldfaced paulson so anytime we refer to him now which is called bald face paulson so hopefully someday you'll be swimming. with the fishes so that article thing you know chronicles all the insider trading that paulson obviously and blatantly did and ends with the biggest crony capitalism of all which was tarp when he said this is an investment not an expenditure and they break that down and they look at it and say it's a bald faced lie because for every one hundred dollars in bailout funds handed over to healthy banks the american taxpayer receive just seventy eight dollars worth of assets according to a report by the congressional oversight panel chaired by elizabeth warren so in
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total the treasury paid two hundred fifty four billion for assets worth just one hundred seventy six billion which was a stealth bailout of wall street a seventy eight billion yeah and of course you hear all the time on mainstream american television under obama paulson people got back the taxpayers got back the money from the bailouts that's a bald faced lie that's a hank paulson bald faced corny capitalist lie and but these liberal talk show hosts like a bill maher for example on h.b.o. he says this every other week while the taxpayers got the money that the back which is not only not right but it's not even ten cents of the dollar they didn't get back a penny on the dollar they're still waiting to get back their first penny on the dollar and yet this guy just perpetuates these ridiculous notions in the public domain that somehow his boy obama is faultless and all this when he sanctioned the theft by paulson a continuation of this theme of the mafia racket that is has become the federal
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government and those connected to the federal government here's the spin on the hank paulson story the positive side paulson hedge fund chat business as usual says william d. cohen of bloomberg he asked was it nothing more than crony capitalism as a rolling stone and janet have a kohli said or was it just paulson doing a difficult job as argues william poole a former president of the for. all these are bank of st louis who said it seems to me you've got to cut the guy some slack even if you tipped his hand how do you prepare the market for the fact that policy has changed without triggering the very crisis that you're trying to avoid what do you see supposed to say without misleading these people right where they didn't use the term liquidity or market making which is generally the terms that they use to cover for their crimes in the sense and that again is completely a misleading statement if there's no market for these securities that should be the
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tip off that the market is saying that we don't want to do transactions with these securities that if you create you know fake liquidity to make markets in these securities you end up with seven hundred and something trillion dollars in derivatives that we have now in the current global system to too much debt that could possibly be absorbed by the system and all these draconian estonia measures austerity measures that are being forced on the people and causing huge suffering so that's not enough i mean it's it's just not enough to say that i'm stealing money because there's a liquidity issue if i go into the liquor store and i hit somebody over they have a ball peen hammer and steal their money and say well you know i'm having a liquidity crisis i needed liquidity that doesn't justify the crime and paulson by stealing a bunch of money and cronies and that's one industry stealing money and saying well we're having a liquidity crisis that doesn't justify the crime you're broke because a your model doesn't work b. there's no money because you stole most of it just printing up a bunch of fresh new currency doesn't replace the fact that you stole the original
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batch of the install and see there's no regulations to stop you that doesn't again mean that you're innocent of the charge of stealing and therefore you can be exonerated before the inevitable capital punishment comes your way and then william cohen goes on to say according to bloomberg markets it seems that none of the big wigs at the meeting with paulson traded on the information that paulson conveyed although tracking specific short sale. transactions is impossible from public information so he says there is seems nobody traded on insider information although it's impossible to track so we're just making the statement up out of thin air and it's impossible to track all the transactions that are in the so-called dark pools that are in the block trading that goes on off the markets on the internet or other areas which in itself is questionable why should there be totally black pools unregulated dark exchanges where people can trade of inside information clearly if
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you look at the price action i mean i haven't designed systems myself i can tell you without any question that there was trading on inside information i mean i'll say that and i'll be happy to testify in front congress like even exactly how it's done but you'll never have me there because you're too chicken to find out the truth because it would mean that the golden goose of the u.s. dollar reserve is dead and all the thieving going on in congress is finished and you've got to get real jobs you know prostituting yourself down there in forty second street and giving two dollar homers where you should be instead of in washington giving a billion dollar homers but speaking of not leaving a trace of your crime behind max m.f. global customer my entire account is missing this is high ridge futures fund in illinois based futures a fund and they said that more than fifty million dollars held in account with the broker dealer unit of m.f. global is missing and they're asking the federal bankruptcy judge to find it for them but they haven't been able to find it yet the article notes that one point two billion in total is missing still that would mean customer accounts are missing
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about twenty two percent of their total of five point four billion i know where it is in jamie diamond sock on the weekend when he's up down doing this pimp thing i'm jamie down with the pimp i got the billion in my stock come on down and simple where's the whole almost a prostitute jamie diamond the c.e.o. of j.p. morgan and also the new york federal reserve bank fly oh oh. almost superfluid shock to some schmuck. and the article goes on to say once run by former new jersey governor john core sign m.f. global filed for bankruptcy on october thirty first after a bet on european sovereign debt worried markets causing a liquidity shortfall so here is the liquidity shortfall excuse that caused this crime to happen markets failed so they failed because the people engaging in them are crooks and the there needs to be a real architecting of the market so you don't simply saying that they funnel of
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blood pouring into the streets from the mass slaughter happening on the hill is beginning to recede and so we need to continue the mass slaughter up on the hill to keep the blood flowing in the streets that's the logic of a hank paulson junk or resigned has not been arrested for the crime of taking this segregated funds from his clients account and paying off his liquidity shortfall now look at how what happens when joe part of marmite does the same thing u.k. banks charging as much as eight hundred thousand percent on over to half that's ryssdal what how much you know you or i normal people have a liquidity shortfall in your account and your checking account at a bank in the u.k. and you're charged at a rate of eight hundred thousand percent and it just basically they just b.c. is the equivalent of financial sophists but you know you go in there and you immediately get this disease this the banks there enjoy syphilis well speaking of
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liquidity shortfalls max portugal is latest country to go m.f. global raid pension funds to delay fiscal death portugal has rated five point six billion euros of pension fund assets in a controversial scramble to me its deficit targets that's right. no fund is safe from the marauding banks stirrers and their thieving ways pension accounts are vulnerable bank accounts are vulnerable brokerage accounts of horrible h.s.b.c. clients are vulnerable barclays accounts are vulnerable bank of america's vulnerable wells fargo's vulnerable don't think warren buffet is going to be playing as ukulele in bailing you out when they steal your money he won't be happy laughing is to get back there on the whole some hawaiian island counting is billions but notice how all of the laws we think we live by are applied just completely different to the normal person compared to a bank so john chorus line encounters a liquidity shortfall he just grabs money he steals money and pays off and nothing happens to him right so just b.c.
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clients they have a liquidity shortfall they overdraft their connecting account they charge of eight hundred thousand percent interest m.f. global they have a overdraft on their global account and they basically make them whole or they give a pat on the back or they give a multi-billion dollar reward exactly and hank paulson did the same when he provided seven point seven trillion in liquidity shortfall coverage for the banking system on which they made thirteen or eighteen billion dollars in profits how do they make profit on it if it weren't being paid to take the money for it to cover their liquidity shortfall right at the term profit is a bit disingenuous doesn't mean profit implies that they worked for their profit they were just awarded are gifted billions and billions of dollars because they happen to be friends of hank paulson and there at the end of the quarter they said oh we have billions and billions of dollars that wasn't because you worked for it it wasn't a profit but going back to my bank robber
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a liquor store robber doesn't take as you know fifty bucks back to his little hole the wall and say look i've got a fifty dollar profit on my business no he just you know he has fifty dollars that he stole mean this is the money that they stole they should all the banks should be required by the f.s.a. in the us. you say the change the word profit to stole stolen money so we understand what's going on here more clearly but of course they won't because they work for the banks there's never thanks so much being on the kaiser report thank you max go i have much more coming why so stay right there. download the official placation. i pod touch from the top story. life on the go. video on demand tease money build
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comes an r.s.s. feed now in the palm of your. question on t.v. dot com. mission. critical should be free. for charges free. range month free. free. free. download free broadcast quality video for your media projects for free media and don carty dot com. world. series technology innovation all the latest developments from around russia we've got the huge you're covered. welcome back to the kaiser report imax keyser time now to go to boulder colorado
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and speak with the rick ackerman of rick's pics newsletter available at rick ackerman dot com rick spent twelve years as a real market maker on the floor of the pacific coast exchange before turning to journalism and news letter writing wreck welcome back to the kaiser report payback so you do it very good now rick you write quote goldman's death dive sounds promising tell us more. promising maybe depending where you're sitting my guy says my subscribers love the idea goldman going to dizzy axis i've got a target down in the sixty's the stocks trading around a hundred bucks now but it's just bail stuff a number that tends to corroborate to zero target so i don't know i guess goldman's got some exposure and ok well everyone would love to see goldman sachs go to zero and go out of business so is this real art is there something to hope for is a sort of christmas gift or is it just another false dawn and we're going to
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another two years of these horrible financial terrorist destroying america and the global economy well the trends unstoppable max and you know the saying about how there's a lot of ruin in a nation and there's certainly you know a lot of room in the goldman banking empire they've got their tentacles pretty much everywhere and it's not as though they're going to go out of business overnight but like many big banks they just have a lot of exposure a lot of links to problems right now speaking of goldman former bankers from the bank have been placed into power into several european countries now as the vampire squid kind of extends its reach you have a completely different take on the arrows and the euro than most commentators and analysts tell us about it i've been following the euro pretty closely and it was curious that it wasn't collapsing even on the. you know we've got sort of ups and. we're on the upswing here because. talking about
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a four pronged plan that's going to save you i'm not even sure that's believed at the official level but. if some of the european countries the pigs go down and it looks like market rates are going to push that date forward you know you've had it. up at that very critical threshold of seven percent but as. you know is concerned italy's in trouble if it's got a. percent so we're kind of watching the euro steady some thirty's trading around one thirty four unchanged now and i think it's because even if. for greece italy and spain and the others that certain countries including germany will be keepers of the flame they're going to keep the euro live i don't think the germans would revert to. but essentially the european
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experiment can be kept alive and it would. cost to germany to keep deeks going simply because they would emerge from a bankrupt europe as one of the few hard currency economies and that means they'd be selling mercedes benz is in hard currency plus their customers essentially to go bankrupt would be very would be patched for germany because it's got such a good strong export economy but i think when push comes to shove the germans are going to do the right thing such so much fear of a hyperinflation but rather the idea that german bankers understand that putting another two to three trillion euro of debt on top of the current problems won't solve them. you're saying that you could have a split in the euro they germany would be part of the northern bloc the strong block the hard currency block and that there are immediately would have to take
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a haircut on their exports because then that currency would trade like the swiss franc before anyway before it was. marked down by the swiss banks central bank remember it was galloping along and trading quite high so they would take a haircut on their exports but they are you're betting are your thoughts are that this is preferable to simply engorging the eurozone with multi-trillion dollar currency enabled debt players because that would be a guarantee repeat of the hyperinflation days well exactly i don't think they could promote it other hyperinflation similar to the twenty's the mechanisms are in place to did that but it could it could come about in another way you know already that i've been kind of a hard core deflation is still over the years but at this point i except the argument that it's some point we would have a hyper inflationary spike ok so if the euro is not as bad as people are making it out then i would say the flip side of that the dollar is probably not
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a strong as people think the dollar has been and i use this word in quotes as safe havens and it's really a matter of the whole world's money hot money piling in and out of what they call the risk trade and when the dollar looks strong will it have other countries you know we've got problems all right now let's talk about the relationship between the dollar and the euro markets reacted wildly phoria to the announcement at the fed swap lines or so europe are open explain what the swap lines are how the euphoria will be more or less short lived i think as one of your thoughts or not can you can you talk about the swap lines and talk about u.s. money markets as well and how that plays into the scenario if you have a comment on that will the reason the sloppy work i think is because no one can explain them you know. we have a question the rate on swaps is going down it's easier for countries that get in trouble to borrow in dollars but ultimately the guarantor in the source of those
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dollars is the u.s. so you might ask the question is the u.s. essentially getting in need deep in a talian in spanish debt are we ultimately becoming the guarantors and i think we are but it's really hard to kind of trace to the follow the money path there you can assume though that that it's today actually speaking the world is one interlocking directorate and the u.s. is sort of has come in to help suppress the borrowing rates of italy and spain right while they money markets in the u.s. are vast the primarily an euro sovereign debt and it was a parent that credit was freezing up and saw the fed extended this line of credit to europe in order for the money markets not to repeat what happened in two thousand and eight when there was a here a repeat of two thousand and eight when the actual money markets were threatened freeze up but what do you make of the m.f.
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global story rick ackerman what rules regulations and laws have been broken why is john cores seen yet to be arrested what's your take on that why is the yet to be rested i don't think i'd bet on that but. you know the thing about m.f. global when i saw the story initially i thought well here's another problem that's going to affect. the hedge funds and everybody else it's a little too deep in in leverage derivatives and it turned out that a whole bunch of my friends were snared in m.f. global too i was talking to a rare american friend of mine who lives in france and trades and his account just like gerald solent a for one his account has been frozen and he says they know where the money is but it's odd that it's just being sort of kept in some sort of escrow there but. shows you ultimately hell fragile the network is that allows me and everybody else to trade right on up to the level of sara lee large hedge funds
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but the m.f. is going to it looks like it's going to take a lot of retail guys with it and the problem you know that slips like they'll get their money back but not everybody can wait six months or a year or however long it takes a while confidence in the system is shaken and the system runs on confidence people who have broken to count the carriages accounts bank accounts are wondering if they if their money is safe the answer obviously is no so. it isn't confidence as it swirls down the toilet bowl isn't this going to add to the complications of the overall systematic risk that's already showing that said well i think the comp confidence is already evaporated and it's on i have to say that people who still have their money in firms that have the same risks as m.f. global are not so much confident as mistaken about the idea that don't be able to get out first they'll be some sort of early warning shot and they'll be able to withdraw their money so you know when everybody and i use that word in quotes to
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when everybody thinks that way and everybody tries to the exit door at the same time there is no exit all right now you mention about getting out first we know that hank paulson tipped hedge funds about what he was going to do over there at the treasury when he was running it inside information market manipulation for people who don't have that kind of inside information and they look at the charts you know this is why being able to read the charts is so important and of course their newsletter is primarily a chart reading is letter and from the charts from the price action of various stocks bonds or commodities we can glean some trends and make some forecasts and not only does your newsletter provide some really insightful commentary on directions for people who don't have a hotline to barack obama. mommas office where they get inside information directly from the from the inside trader and but i've also been working as
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a journalist off and on over the air so it's actually easy to read their stuff but as it so let's talk about commodities. how do you go forward on the commodities going to give recommendations. you might feel safe holding how do you go forward in all this environment rick ackerman well i tend to be an idiot when i relied purely on my instincts max and i've looked at charts. i put a lot of weight on charts because i tend to get the turning points wrong it's very some things are too complex to understand really you look at the price of bonds go up or down i had a target of one forty five and fourteen thirty seconds on the thirty year december t.-bone and it went just a little bit below that i would say to support hill but to me it was a very important number because it's the bonds are dropping below this important support it suggests that the world may be or nay. an inflationary course or maybe even a hyper inflationary course so that was a big number for baby and so forth held you look at the dollar index you know it
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approached a crucial threshold at eighty and you might think that that's really what triggered the central banks to act in concert to i guess you could say liquefy the world so did numbers a really important one number the one thing that looks odd to me right now is that we've got the dell up almost one hundred fifty points right now and the february comix gold contract is off eight bucks and that's a kind of divergence we haven't seen in a little bit i think it suggests that the stock market rally has run its course it's about a thousand points right now but you know as far as i'm concerned it's a lot of noise so final thoughts come in for twenty twelve what do you what's the going to be the big surprise trade of twenty twelve i think it's going to be a very tough year for stocks and you might see commodity slow across the board that would include gold but i think that gold relative to other assets is going to be
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a good performer so i'd say keep hold keep keep your bullion as we know from the lessons of m.f. global you want to keep it in the form of physical metal don't trust paper but i do think it's going to keep going to be a very tough year for stocks. all the time we have thanks for being on the kaiser report thank you very much it was always a pleasure to talk with you max. and of the kaiser report with me back thighs are at stake are like my gastric ackerman of rick ackerman dot com you can follow us on twitter or facebook you can e-mail at kaiser reported that are you.
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me it is easy peasy.

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